4 Ways an ERP System Helps You Simplify and Grow Your Small Business
As the owner of a small or mid-size business, you’re probably thinking about the best way to grow and make your company more profitable. But it can be hard to focus on growth when you and your team are spending most of your time working on the smaller details. This challenge becomes even greater if you're using disparate systems for various areas of the business as it adds unnecessary complexity.
Implementing an ERP system is a sure-fire way to simplify your business processes and increase efficiency, giving you the time you need to focus on growing the business. In fact, the top 20% of growing businesses have already implemented ERP. Here are just a few ways that an ERP solution can simplify and transform your organization.
1. Centralize your business data in a single system
When you integrate the processes from every area of your business into a single software application, you get instant visibility into your performance. So you don’t have to spend time searching through multiple entries, across numerous spreadsheets and databases, to find what you’re looking for. An ERP solution gives you easy access to all your data in a useful way. So you can make smarter, faster decisions.
2. Use automation to save time and money
Manual data entry across multiple systems can be very time consuming. And it takes your staff away from performing other critical functions that drive growth. Automation is a key feature of an ERP solution – because you're operating in a single system, data automatically flows through to different departments. You eliminate the need for multiple manual entries, freeing up your team to focus on what matters – actually running and growing your business.
3. Reduce simple mistakes and human error
Mistakes in your data can be costly. Experian’s Global Research Report 2014 found that 59% of data errors are caused by human error. And it can cost up to $100 to fix each mistake, depending on when the error is noticed. A centralized ERP system immediately reduces the potential for mistakes by streamlining your processes and reducing the number of physical entries that need to be made.
4. Make sure you’re working with clean data
The information you get out of your business systems is only as good as what’s going into it. Clean up your data by removing any outdated information, correcting inaccurate information or poorly input customer details. Research shows this “bad data” affects the bottom line of 88% of companies worldwide. And the average company could be losing 12% of its revenue due to wasted marketing spend, resources and staff time – all due to inaccurate data.
Having your key business data in an ERP system makes it much easier to maintain clean data. You only have one place to maintain the information, so you don't have to waste time trying to determine which version of the same data is the "most right". A good ERP solution will have robust reporting tools that make it easy to identify data requiring correction, helping you stay on top of your data.
Implementing an ERP system allows you to simplify your processes, resulting in increased efficiency and productivity. And with all your data stored in a single system, you can be sure it’s accurate and up-to-date. The time and resources you used to spend simply managing your data can now be put to better use focusing on the areas that will really help you grow.